Production is productively efficient when

Question

Quizplus · Accepted Answer

Productive efficiency is achieved when the maximum possible output is being produced from a given collection of inputs, taking into consideration the existing technology and production processes. This means that firms are using their resources in the best way possible, without wasting any inputs or resources, and producing at the lowest possible cost. Workers and capital inputs are used in an optimal manner, and there is no way to increase the production of one good without reducing the production of another.

Production Is Productively Efficient When